AUSTRALIAN CBD OFFICE

Transcription

1 RESEARCH AUSTRALIAN CBD OFFICE SUPPLY & DEVELOPMENT MAPS DECEMBER 0 Key Facts 0,00m² of new office supply will be completed in 0, up % on 0. Gross supply is anticipated to rise by another % in 0 to 0,00m², driven predominantly by Sydney. Pipeline for additional supply in 0 and 0 is benign, with only Sydney adding materially to stock. Many office schemes are being altered to residential use, but increasingly hotel and student accommodation also. MATT WHITBY Group Director Head of Research and Consulting Follow After a hiatus in office completions in 0, new supply rebounded in 0, with feasibility supported by the steady decline in prime yields; albeit many schemes have and will continue to divert to residential or alternate uses. The 0 calendar year will deliver approximately 0,00m² of new and refurbished stock to the major Australian CBD markets, which is up % on the,000m² recorded during 0 and slightly higher than the 0 year average (,000m²). The CBDs with the greatest supply during 0 were Sydney (,m²), Perth (.m²) and Melbourne (0,m²), with the least amount of supply added in Canberra (,m²). Following the hiatus in office completions in 0, with many developers/owners actively driving their respective pipelines, the rebound will continue in 0, with gross supply anticipated to jump by another % in 0 to 0,00m². With the first of the Barangaroo office buildings completed (Tower ), the majority of new supply will again occur in Sydney (,000m²), which will include Towers and at Barangaroo, 00 George St, George St and tranches of backfill space coming back on line following major refurbishments. The Brisbane CBD will also see two major developments and a refurbishment complete following the recent completion of 0 Ann St (Q 0), with 0 Queen St and William St both completing in 0. Melbourne is nearing the end of a long supply cycle, however new supply will still total 0,000m² in 0. Perth, Adelaide and Canberra will all have benign supply over the next few years, which will assist in cushioning generally weak demand conditions. The pipeline for supply additions in 0 and 0 is currently very benign nationally. Feasibility for construction of new space has been supported by steady declines in prime yields, particularly for fund through developments with strong pre-commitment. However, many office schemes are now being amended to alternate uses, due mainly to the exceptional uptick in residential demand. Permanent withdrawals of office stock across the major East Coast markets accelerated through 0, increasing % above 0 levels, however the peak is expected to be in 0 when circa,000m² of office stock is projected to be withdrawn across the East Coast CBD and select Fringe markets. Residential and hotel developments are the dominant alternate uses at 0%, however Hotels and Student Accommodation use is on the radar again.

2 SYDNEY Deco, Clarence St # -,m² [Tyro Payments/Havas] Union Investment - Q 0 & Q 0 - % committed Farrer Pl # (ex GPNSW) -,00m² [Minter Ellison] DEXUS/GPT/APPF - Q & Q 0 - % committed Barangaroo T -,00m² [Westpac/Gilbert + Tobin] LLITST - Q 0 - % committed Martin Place -,0m² [Ashurst/Challenger/PIMCO] DEXUS/Cbus - Q 0 - % committed Aurora Pl, Phillip St # (ex Minter Ellison) -,m² NPS (Korea) - Q 0 0 Martin Pl # -,0m² [Apple/Regus] Pembroke Real Estate - Q 0 - % committed Barangaroo T -,00m² [KPMG/Lend Lease] LLITST - Q 0 - % committed 0 0 Pitt St # (ex QBE) -,00m² Yorkban P/L - Q 0 George St -,00m² Charter Hall Core Plus Office Fund - Q 0 00 George St -,m² [EY/Mirvac] Mirvac/AMP - Q 0 - % committed Barangaroo T - 0,00m² [PWC/HSBC/Marsh & McLennan] LLOneITST - Q 0 - % committed George St # (ex Ashurst/J.P. Morgan) -,000m² DEXUS/CIC/CSC - H 0 One Wharf Lane, Sussex St -,00m² M&L Hospitality - Aug The Bond, 0 Hickson Rd # (ex Lend Lease) -,000m² DEXUS - H 0 0 Shelley St # (ex KPMG) -,00m² [Suncorp] DEXUS/Brookfield - H 0-00% committed Pitt St # (ex Challenger, Apple) -,m² ISPT Core Fund - H 0 0 Sussex St, DPIII (ex Marsh & McLennan) - 0,m² GPT (GWOF) - H 0 George St # (ex Suncorp) - 0,m² Memocorp Australia - H 0 Kent St # (ex Westpac) -,000m² Blackstone/Mirvac - H George St # (ex EY) -,00m² Brookfield/Arcadia - 0 Market St # (ex WBC) -,m² CIC - 0 Darling Square -,000m² [CBA] Lend Lease - H 0-00% committed 0 Sussex St, DPII # (ex PWC) -,000m² [IAG] GPT (GWOF)/AMP (ACPF)/Brookfield % comm. 0 Clarence St -,000m² [Arup] Investa % committed George St # -,m² (ex IAG) Investa/Brookfield - Q 0 The Ribbon, Wheat Rd -,000m² Markham/Grocon Martin Place - 0,000m² Investa/Gwynvill Properties - Mid 0 Bligh St -,000m² Investa - 0+ Quay Quarter Sydney -,000m² AMP Barangaroo C & C - circa,000m² Lend Lease - 0+ George St - ~,000m² LaSalle Investment Management - 0+ Wynyard Place -,000m² Brookfield CQ Tower, George & Pitt Sts - 0,000m² Lend Lease Pitt St - 0,000m²+ Mirvac Under Construction/Complete DA Approved / Confirmed / Site Works Includes select CBD major office supply (NLA quoted) Major tenant precommitment in [brackets] next to NLA # Major refurbishment/backfill Source of Map: Knight Frank Research LLITST refers Lend Lease International Towers Sydney Trust (0% CPPIB, % APPF Commercial, % Lend Lease, 0% APG) LLOneITST refers Lend Lease One International Towers Sydney Trust (.% Lend Lease,.% QIA, % APPF Commercial)

3 AUSTRALIAN CBD SUPPLY & DEVELOPMENT MAPS 0 RESEARCH MELBOURNE Spencer St -,00m² [Victoria Police] Cbus Property/Invesco - Q 0-00% committed. 0 Bourke St -,000m² Charter Hall - Q 0. Bourke St -,00m² [AGL Energy] Mirvac/TIAA-CREF - Q 0-00% committed. Collins St -,000m² [Corrs/Leighton Contractors/Jemena] Investa - Q 0 - % committed. 0 Collins Sq - 0,000m² [KPMG/Maddocks/AECOM] Walker - Q 0 - % committed. - Riverside Quay ^ - 0,00m² [PwC] Mirvac/ISPT - Q 0 - % committed. Collins Sq -,000m² [Link Group] Walker - Q 0 - % committed. 0 Collins St -,000m² [Bank of Melbourne] St Martins/Equiset - Q 0-0% committed. Collins St -,000m² [Pitcher Partners] Mirvac - Q 0-0% committed. 0 Bourke St -,000m² Brookfield Collins St -,000m² Queensland Investment Corporation (QIC) - 0+ Collins St -,000m² Mirvac - 0+ Collins Sq -,00m² Walker - 0+ Y, Collins St -,00m² Lend Lease - 0+ Y, Collins St -,000m² Lend Lease Latrobe St -,00m² Digital Harbour - 0+ North Wharf - 0,000m² WTC Asset Management Collins St -,000m² DEXUS Flinders St - 0,000m² Eureka/Asset - 0+ Docklands Dve -,000m² MAB Flinders St - 0,000m² DEXUS Collins St -,m² Cbus Property Lonsdale St -,000m² Uniting Church/Charter Hall Collins St -,00m² Abacus Property Group - 0+ Spring St - 0,000m² ISPT - 0+ Spencer St -,000m² Australia Post/Cbus Property Sites B & B - 00,000m² Lend Lease - 0+ Exhibition St - 0,000m² Telstra Swanson St (CUB Site) -,000m² Grocon Fed Square East - 0,000m² State Government Source of Map: Knight Frank Research Under Construction / Complete DA Approved / Confirmed / Site Works Major tenant precommitment in [brackets] next to NLA ^ Southbank precinct Office NLA quoted

4 BRISBANE 0 Source of Map: Knight Frank Research 0 Albert St^ c,000m² DWPF Q 0 Arrow/Worley Parsons/Rowland Queen St c,00m² ISPT Q 0 0 Creek St Annex,m² of GFA DEXUS Property Group/DWPF tba 00 George St c,000m² NLA Shayher Group tba Under Construction / Complete 0 Ann St,m² [CBA] Daisho Q 0 % committed The Regent Development c,000m² ISPT subject to pre-commitment DA Approved / Confirmed / Site Works 0 Queen St,m² [BHP/ PwC/ Freehills] % committed Grocon (DEXUS/DWPF) Q 0 Adelaide St,00m² Valparaiso Capital withdrawn Q 0 Student Accommodation Conversion Eagle St^,m² - Bloomberg Inc Q 0 BHP/Grocon Eagle St^,m² - GPT Q- /0 PWC/Allens Linklaters/HWL Ebsworth/Grocon William St,m² [State Govt] Cbus Property/ISPT Q 0 00% committed 0 Ann St#,00m² Private Investor Q 0 0 Margaret St,0m² Aspial Corporation withdrawal Q 0 Residential Development Queen St,0m² Cbus withdrawal Q 0 Residential Development Former office buildings withdrawn for hotel or residential conversion/ redevelopment during 0 Source of Map: Knight Frank As at December 0, excluding strata #major refurbishment/entire building available ^sub-lease space >,000m² with a number of contiguous floors Sub-lessor identified in italics. Avail office NLA quoted. Major Pre-commit in [brackets] next to the NLA.

5 AUSTRALIAN CBD SUPPLY & DEVELOPMENT MAPS 0 RESEARCH PERTH Treasury Building, - Barrack St - 0,m² [WA State Government] Mirvac / Keppel REIT consortium - Q 0-00% committed Hay St - 0,0m² [GHD] QUBE - Q 0 - % committed Brookfield Place ( St Georges) -,00m² [Ashurst, Deloitte, Corrs, Brookfield, Wesfarmers] - Brookfield - Q 0 - % committed KS (Kings Square)*, Wellington St -,m² [Shell] DEXUS & DWPF - Q 0-00% committed KS (Kings Square)*, Wellington St -,m² [John Holland] DEXUS & DWPF - Q 0-00% pre-committed KS (Kings Square)*, Wellington St -,00m² [HBF] HBF - Q 0 - % committed KS (Kings Square)*, Wellington St -,m² DEXUS & DWPF - Q 0 - subject to pre-commitment - St Georges Tce # -,00m² [includes new studio of 0m²] Primewest - late 0 0 Capital Square, - Mounts Bay Rd - 0,00m² [Woodside] AAIG - mid 0-00% committed 00 Murray St # -,000m² AWD Diversified Ltd - subject to pre-commitment 0 Hay St (old Melbourne Hotel site) - 0,000m² Oakesfield Pty Ltd - subject to pre-commitment 0 0 Hay St -,000m² BGC - Dev Approved - subject to pre-commitment Elizabeth Quay - 0,000m² excluding 0,000m² Chevron site Leighton / Broad Construction Services Crn Barrack St & The Esplanade - 0,000m² [Chevron] Chevron - DA Pending Perth City Link * - Circa 0,000m² exclusive of Kings Square Mirvac/Leighton development consortium St Georges Tce (Bishops See no.) -,000m²+ Brookfield/Hawaiian - subject to pre-commitment KS (Kings Square) * -,000m² Seven Entertainment - DA Pending Waterbank, near The Causeway -,000m Lend Lease / MRA - Initial site works Completed / Under Construction Dev Approved / Confirmed / Site Works Office NLA quoted Major tenant precommitment in [brackets] next to NLA # Full refurbishment * Mirvac/Leighton awarded the Perth City Link development contract excluding the Kings Square precinct. KS to are being developed by Leighton / Seven Group. Source of of Map: PCA PCA

6 ADELAIDE Pirie St (ex BAB) # -,000m² [Lucid, Channel, Homestart] Aus Property Developments - June 0 King William St # - ~,000m² (ex Origin) [SA Govt] Anvil Capital - December 0-0% committed 0 Flinders St -,m² [People's Choice C.U. & Santos**] Cbus - October 0 - % committed King William St -,00m² Brinz Holdings - Q 0 0 Frome St -,00m² [Grant Thornton] Emmett Properties % committed University of Adelaide AMNS^ - North Terrace,000m² University of Adelaide - 0+ Pirie St -,000m² Palumbo North Terrace -,000m² Adelaide Development Company (ADC) Precinct GPO (Plaza) - King William St -,00m² Charter Hall/Telstra Super Fund Precinct GPO (Tower) - - Franklin St -,000m² Charter Hall/Telstra Super Fund - 0+ Riverbank Precinct - Austin Street - 0,m²*** Eklipse Capital Angas St (Hospital) -,000m² Commercial & General Wakefield St -,00m ² Kyren Group Franklin St -,000m² Private (Molfetas) - 0+ Worldpark - Richmond Rd, Keswick -,00m² Axiom (Stage B & C) Wyatt Street -,0m² Private - 0+ Worldpark, Keswick Festival Plaza / Riverbank Precinct - 0,000m² Walker Corp/SA Government - 0+ Under Construction/Complete DA Approved / Confirmed Source of of Map: Map: Property PCA Council Major tenant precommitment in [brackets] next to NLA # Major refurbishment Office NLA quoted (>,000m²) * Owner occupier **Santos has subleased all (,000m²) of their pre committed space ***Mixed use development comprising residential, retail & commerical ^Adelaide Medical & Nursing School ~ note total NLA is,m² C.U. Credit Union BAB Bendigo & Adelaide Bank

7 AUSTRALIAN CBD SUPPLY & DEVELOPMENT MAPS 0 RESEARCH CANBERRA - Molonglo Drive, Airport -,000m² Capital Airport Group - Complete - awaiting commitment NORTH Constitution Ave ^ # - 0,m² ISPT - Complete (total NLA 0,0m²) - awaiting commitment Canberra Ave, Forrest -,00m² [Dept of Finance *] Willemsen Group - Complete - 0% committed * Tuggeranong Office Park - 0,00m² [Dept of Social Services] Cromwell Property Group Q 0, 00% committed ~ Vernon North - Building, London Circuit^ -,000m² Leighton/Mirvac JV - 0+ subject to pre-committment Signature Building, London Circuit^ -,000m² Leighton/Mirvac JV - 0+ subject to pre-commitment Section ^ -,00m² QIC - 0+ subject to pre-commitment Northbourne Square, Northbourne Ave^ -,000m² Walker Group - 0+ subject to pre-commitment Nangari Street ^ -,00m² Molonglo Group - 0+ subject to pre-commitment 0 Furzer St, Phillip - 0,00m² Doma Group subject to pre-commitment Section (Block )^ - 0,000m² ACT Government - 0+ Darling Street, Barton -,00m Doma Group - 0+ Macquarie St, Barton - 0,000m mixed use Doma/Morris Group Antill St, Dickson (ex ACT Tab bldg) -,000m² Amalgamated Group - 0+ subject to pre-commitment Landmark Building, London Circuit^ - 0,000m² Leighton/Mirvac JV - mooted Vernon South - Building, London Circuit^ -,000m² Leighton/Mirvac JV - mooted Callam Street, Phillip -,00m Hindmarsh Group - Mooted, subject to pre-commitment AIRPORT Anzac Park East, Parkes # -,m² Federal Govt - mooted Major tenant precommitment in [brackets] * Under Offer - Contract not yet signed ^ Civic precinct Office NLA quoted # Major refurbishment ~ Development is of the same size as what it's replacing Under Construction/Complete DA Approved / Confirmed / Site Works 0 SOUTH WEST Source Map source: of Map: ACT ACT Planning Planning and Land Land Authority Authority (ACTMAPi)

8 COMMERCIAL BRIEFING For the latest news, views and analysis of the commercial property market, visit knightfrankblog.com/commercial-briefing/ RESEARCH Matt Whitby Group Director Head of Research and Consultancy + 0 Matt.whitby@au.knightfrank.com Jennelle Wilson Senior Director Research QLD + 0 Jennelle.wilson@au.knightfrank.com Richard Jenkins Director Research Vic + 0 Richard.jenkins@au.knightfrank.com Nick Hoskins Director Research NSW + 0 Nick.hoskins@au.knightfrank.com OFFICE LEASING John Preece Head of Office Agency & GCS Australia John.Preece@au.knightfrank.com CAPITAL MARKETS James Parry Head of Institutional Sales Australia + 0 james.parry@au.knightfrank.com Paul Henley Head of Commercial Sales Australia Paul.henley@au.knightfrank.com Knight Frank Research provides strategic advice, consultancy services and forecasting to a wide range of clients worldwide including developers, investors, funding organisations, corporate institutions and the public sector. All our clients recognise the need for expert independent advice customised to their specific needs. AUSTRALIA Stephen Ellis CEO, Australia + 0 Stephen.Ellis@au.knightfrank.com RECENT MARKET-LEADING RESEARCH PUBLICATIONS Sydney Transport Infrastructure Insight December 0 Sydney CBD Office Market Overview September 0 Melbourne CBD Office Market Overview October 0 Australian Apartments Residential Overview Q 0 Knight Frank Research Reports are available at KnightFrank.com.au/Research Knight Frank 0 This report is published for general information only. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no legal responsibility can be accepted by Knight Frank Research or Knight Frank for any loss or damage resultant from the contents of this document. As a general report, this material does not necessarily represent the view of Knight Frank in relation to particular properties or projects. Reproduction of this report in whole or in part is not permitted without prior consent of, and proper reference to Knight Frank Research.